Debt has been in the news as of late, whether it’s a discussion of the government debt ceiling or the accumulated student loan debt of college students. Then there’s the continued issue young families have with consumer debt, which averages around $15,000 per household. The first problem is something politicians need to handle at some point in time. The other two issues are solely in the laps of young families. Yet some folks want to pretend that it isn’t there.
There are a few reasons for this. For example, they feel they make enough money to handle it while accumulating more, In another instance, family members think they can manage by consolidating and moving it from one credit card to another. Then there are those who sweep it under the rug and avoid the lump every time the walk past. In the end, they all feel their problems can disappear as long as they ignore it.
This is far from the case, unless a money tree grows nearby. According to a recent report in the New York Times, personal debt is on the rise again after several quarters of hunkering down to pay it off. This is bad news, because it can affect the economy, resulting in yet another slowdown. Therefore, as a special service to the readers of this blog, here are a few reasons you need to get out right now.
Debt sucks. Many financial “experts” out there tell people it’s good to have a little debt in order to build their credit. What is the logic behind this? Why would you want credit in the first place if you had the money to pay for things with cash? No matter what way it’s presented, it isn’t good. Not only does it financially hurt a young family but …
Debt physically hurts. Stomach pains, headaches, anxiety and sleepless nights. These are some of the physical manifestations that can occur when a young family faces seemingly insurmountable debt. And as the debt continues to increase the maladies double or triple, possibly resulting in serious mental or physical illness.
Debt causes relationship issues. Another recent New York Times report revealed that 45 percent of divorces are related to financial issues. Think of it this way — these problems cause stress and anger, which causes arguments, which causes a lack of communication, which causes a reduction in intimacy. Factor in alimony and child support once the marriage ends and these stresses can increase significantly.
Getting out of debt isn’t hard. It may seem like a daunting task; however, getting out of debt is not as hard as it seems. With a hard work, a deduction in spending, and pay down of debt, smallest to largest, a young family can be debt-free anywhere from a few short months to a year or so. Getting past the fear is the hardest part of this. Hopefully, these reasons motivate you to pull away from your own debt issues.